Category: 1099

Forms 1099-NEC and 1099-MISC include new boxes for tax year 2026. The changes are driven by the No Tax on Tips and No Tax on Overtime provisions of the One Big Beautiful Bill Act (OBBBA), which allow eligible recipients to deduct qualified tips and overtime compensation. To support those deductions, payers are required to separately…

The 2026 tax year includes significant changes to 1099 reporting, affecting which vendors require forms, what data those forms must capture, and how returns are submitted to the IRS electronically. This guide covers what changed, which organizations are affected, and what steps to take before January 2027 filing season. Looking for 2025 form changes? Those…

The IRS has announced the retirement of its FIRE (Filing Information Returns Electronically) system; a filing platform that has served taxpayers for over four decades. As of mid-July 2026, the Tax Year 2025 filing season is well behind us, and organizations are in the final stretch before FIRE shuts down. FIRE and IRIS are both…

Changes to Form 1099-R in 2026: Distribution Code Y, New Reporting Boxes, and IRIS The 2026 Form 1099-R introduces the most significant structural changes to the form in years: a mandatory Code Y for Qualified Charitable Distributions, three new reporting boxes (7b, 7c, and 7d), and the retirement of the FIRE e-file system on December…

Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, is the IRS information return that brokers and barter exchanges use to report the proceeds from a customer’s securities sales and other reportable transactions, including regulated futures and Section 1256 option contracts handled through a broker. Investors who sold stocks, bonds, mutual funds, options, or other…

If you’ve read that PayPal, Venmo, and similar platforms would begin issuing 1099-Ks for payments over $600 in 2026, that’s no longer accurate. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, reinstated the original thresholds: $20,000 and 200 transactions. (IRS — IR-2025-107) This article covers the rules as they stand today. What…

A second B-notice is not a repeat of the first. It triggers a different process, different requirements for your payee, and different rules around backup withholding. Getting the details wrong — especially sending a W-9 when you shouldn’t — doesn’t resolve the mismatch and can leave you exposed to IRS penalties. This page covers who…

Getting a CP2100 doesn’t mean you’re being audited or penalized. It means the IRS found a mismatch between payee names and TINs on your 1099 filings and is giving you a structured opportunity to fix it. The notice triggers a specific, time-sensitive process, but it’s entirely manageable if you act within the deadlines. This guide…

Form 1099-NEC reports non-employee compensation: payments made to independent contractors and other non-employees for services performed in the course of your trade or business. The IRS requires businesses to issue one whenever certain conditions are met, but there are meaningful exemptions that reduce the number of forms many businesses need to file. Knowing who actually…

Short answer: Filing a corrected 1099 does not trigger a separate “correction penalty.” But if the original error was filed late, or if the correction itself arrives late, the same per-form penalty structure that applies to all information returns will apply. The key is when you correct: the sooner, the better. Why Corrected 1099s Come…

Whether a worker is an independent contractor or an employee determines what you withhold, what you file, and what you owe the IRS if the classification turns out to be wrong. For businesses that use a mix of full-time staff and contractors, getting the distinction right is one of the most consequential compliance decisions you…

(Latest update: June 11 2026) The One Big Beautiful Bill Act’s threshold changes are now in effect. For any payments made on or after January 1, 2026, the reporting threshold for Forms 1099-NEC and 1099-MISC is $2,000. This guide covers how the new threshold works, what it does not change, and how the rules differ…